How to bet on the House

Antonio Madeira
12 Jan 2018

We have all heard the old saying, “the house always wins”. This isn’t just a saying, it’s true. Casinos are profitable business because they always win, statistically speaking. There is something called the house edge, which is the advantage the house has over the player. For example, roulette has the presence of the green squares on the roulette wheel and on the table, giving the house an edge of 5.26% in American roulette or 2.70% in the European version.

On online casinos, this edge is factored into the game scripts themselves, giving the house an advantage over the user, which is usually 1%. The popular 999 Dice got his name because of it’s edge of 0.1%, which leaves the user with a fairness of 99.9% - 999.

However, these low house edges require the house to play many rounds in order to ensure their profitability. Bitcoin casinos often acquire funding from users and give a cut of the profits to the user. This means that you can fund the bankroll to become the house and always win! This is called the Kelly criterion.

There are of course some risks in this system. The house can simply disappear with your coins since you’re entrusting them to a third party. This system also assumes that you can make a large numbers of bets and that over time the positive expected gains will give you a profit. But the house can't choose when to play; it just waits for players to place bets. If players stop betting, a house profit may never occur. Large backers may also dilute your bankroll bet, meaning that if you’re at a loss and new backers join, it may take a long time to recover the loss.

As so, it is important to only back trustworthy, popular and long-running websites. As so, we’ve chosen SatoshiDice, which is one of the oldest and most successful dice games on the Bitcoin universe. SatoshiDice has a 1.90% edge, you will receive half of the profits = 0.95% edge